A little over a week ago marked the beginning of the second open enrollment period of the Affordable Care Act. With it began registration for Covered California, the California health insurance exchange set up as part of Obamacare. This means that deadlines are looming for selecting your health care options for 2015. This blog post will help clarify what changes to be aware of in the coming year and what important dates you have to look out for.
Changing Coverage in 2015
In California, the average increase in health care premiums this year is 4.2%
However, the average increase varies by region and even decreases in some; more precise statistics are available here.
Ten health insurance companies have been contracted to provide health insurance through Covered California for the coming year. Each of them participated in the exchanges in 2014 and their involvement was renewed after they submitted bids to return. The ten providers include Anthem Blue Cross, Blue Shield, and Kaiser Permanente; a full list can be found here.
Two plans from last year will no longer be offered: the Health Net PPO and Contra Costa Health Plans. People subscribed under these plans will have to choose a new option before the appropriate deadline.
For more information on insurance for 2015, see Covered California's pamphlet Health Insurance Companies and Plan Rates for 2015.
The Enrollment Period and Important Deadlines
Enrollment for 2015 is open from November 15, 2014 to February 15, 2015. This is only half of the six-month duration of last year. This window is the only opportunity for individuals or families to buy insurance for next year (barring a “life-changing event” like marriage or having a child).
In general, the 15th of the month is the last date to sign up in order for coverage to begin on the first of the following month. That means that for people who are covered through 2014 and want continuous coverage beginning on the first day of 2015, the last date to choose a plan is December 15, 2014.
If you are currently enrolled through Covered California for 2014 and you do not take any action, your care will be automatically renewed under the same plan. (The exception is if your plan is no longer carried; see above). However, it is still necessary to review your account because the price of your premium could change and if you are receiving tax credits you must confirm your consent to verify your income. More information about renewals is available on the renewal FAQ page.
Regardless of your current plan, you are still encouraged to compare your options to determine what is best for you.
Under the Affordable Care Act, if you go without health insurance for more than three months, you will be charged a fee of $325 or 2% of your income, whichever amount is greater. This means that if you wish to avoid the fee, you need to sign up for coverage by February 15th, 2015 in order to have coverage beginning on the first of May.
For more information, consult the Covered California Website.
Remember to take advantage of your 2014 health insurance
But 2014 isn't over either! Certain health care benefits associated with your insurance may expire at the end of 2015. See our blog post on health insurance year-end benefits to figure out how to make the most of your health care before the year is over.
Related links: How does Obamacare treat sleep apnea?, The Scoop on High-Deductible Health Plans, Important Health Insurance Keywords to Know
Resources: The LA Times, KPCC, NPR, California Healthline
